Safe and Sound

TOWN AND COUNTRY

Harlan, IA
4
Star Rating
TOWN AND COUNTRY is a Harlan, IA-based, NCUA-insured credit union founded in 1939. The credit union has assets of $24.6 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 11 full-time employees, the credit union holds loans and leases worth $21.9 million. TOWN AND COUNTRY's 2,632 members currently have $16.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TOWN AND COUNTRY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during periods of economic instability for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is valuable. When it comes to safety and soundness, the more capital, the better.

TOWN AND COUNTRY fell below the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

TOWN AND COUNTRY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets may eventually require a credit union to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

TOWN AND COUNTRY scored 36 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

TOWN AND COUNTRY scored 8 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One sign that TOWN AND COUNTRY is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.